The Shanghai listing of one of China’s big six state-owned banks could mark the biggest IPO on the mainland since the start of the decade.
Postal Savings Bank of China (PSBC) raised at least 28.45 billion yuan (approx. USD$4.04 billion) via its Shanghai listing on 10 December, with an IPO share price of 5.50 yuan, for the biggest A-share IPO in four years.
PSBC shares debuted in trading at 5.60 yuan before rising to a high of 5.65 yuan.
PSBC also has a greenshoe option of selling 15% more shares that it can exercise within 30 days of the commencement of trading, to raise a further 32.71 billion yuan.
Should PSBC exercise its greenshoe option its IPO will be the largest on the A-share market since 2010.
The listing of PSBC in Shanghai means that all six of China’s big six state-owned banks are now available as A-shares and H-shares.
PSBC was founded in 2007, although its predecessor Postal Savings (邮政储蓄) has a history extending back to 1912. The bank listed in Hong Kong in September 2016, and announced its application for an A-share listing in August 2017.
In February 2019 the China Banking and Insurance Regulatory Commission (CBIRC) announced that it had designated PSBC as a “big state-owned bank,” bringing the number of such institutions in China to six in total.
According to its prospectus PSBC posted operating revenues of 141.606 billion yuan in the first half of 2019, for a YoY rise of 7.02%, while net profits attributable to the parent company were 37.381 billion yuan, for a YoY rise of 14.94%.
As of the end of June 2019 PSBC’s core tier-1 capital adequacy was 9.25%, the lowest amongst the big six state-owned banks.